Economic growth is poised to gain momentum in 2015 and the labor market has started the year on an upbeat note, according to Fannie Mae’s Economic and Strategy Research Group. GDP growth is expected to rise to 2.9% for the full year, up from 2.5% growth in 2014.

“Our forecast calls for an increase in economic growth to 2.9% for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless,” said Fannie Mae Chief Economist Doug Duncan. “Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has benefitted from the improving labor market, which, combined with low gasoline prices, should help drive higher auto sales and overall consumer spending throughout 2015.”